It also noted that a decline in sales of the video games business, as well as a decline in sales of LCD televisions and unfavorable foreign exchange rates, had led to the losses.

However, during the quarter a total of 3.7 million PlayStation 3 units were sold, compared to 3.5 million for the same quarter in the previous fiscal year.

The PSP also saw an increase in sales, up to 1.7 million units sold compared to 1.5 million year-on-year. PlayStation 2 sales unsurprisingly declined from 1.5 million to 1.2 million.

In terms of software, PS3 sales were up to 37.4 million for the quarter, from 35.3 year-over-year. The PSP dropped down to 8.1 million from 11.0 million, and the PS2 declined from 2.8 million software sales to 5.6 million.

Overall, the company recorded a decline in revenue for the quarter of 9.1 percent, down to ¥1.56 trillion ($20.5 billion) from ¥1.73 trillion ($22.2 billion) year-over year. Net loss was ¥27.0 billion ($350 million), compared to profits of ¥31.1 billion ($398.3 million) year-over-year.

Sony also lowered guidance for annual losses to ¥90 billion ($1.6 billion) for the current fiscal year, compared to its original forecast of ¥60 billion ($768.5 million) profit from earlier this year.